At least two banks are welcoming the chance to put their side of the story on interest rates, following a suggestion that a parliamentary committee look at the level of interest rates banks' are charging.
Pressure has been mounting for lower short term rates after a series of cuts in the Official Cash Rate, which the Reserve Bank held at 2.5% at its latest review on Thursday.
The benchmark rate has fallen 5.5 percentage points since June 2008, but the banks' margins on short term home loans have increased.
A member of Parliament's Finance and Expenditure Select Committee, Labour MP David Cunliffe, says he will push for an inquiry into the banks' handling of interest rates.
Mr Cunliffe said the committee would have the power to require the banks to provide evidence and to appear before the committee.
"We've got the power to appoint or hire experts to interrogate the evidence and advise us, and much of that would be done in public, before the cameras," he says.
ANZ National Bank says it would welcome the opportunity to give evidence to MPs and Kiwibank says it would fully co-operate with any parliamentary investigation.
Reserve Bank Governor Alan Bollard says he would welcome a parliamentary investigation.
Dr Bollard told the Finance and Expenditure Select Committee on Thursday he expects the Official Cash Rate to stay at or below current levels and he expects retail banks to lower their rates.
The Reserve Bank will next review interest rate levels in mid September.
